Not Just For The Ultra-Wealthy: Why Trust Deeds Belong In Your Real Estate Portfolio
Las Vegas, NV
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March 07, 2024 08:15 AM Eastern Standard Time
By Faith Ashmore, Benzinga
In real estate, trust deeds are sometimes a neglected investment opportunity. Trust deeds are legal documents that are used to secure a loan for the purchase of a property. They are commonly referred to as deeds of trust. Trust deeds involve three parties: the borrower, the lender and a trustee. The borrower is the individual or entity seeking the loan to purchase the property, while the lender is the entity providing the funds for the loan. The trustee, typically a neutral third, holds the legal title to the property on behalf of the lender until the loan is fully repaid. While many have been wary of them in the past, trust deeds ultimately provide a level of security for investors and offer borrowers an opportunity to obtain financing for real estate purchases when traditional lending opportunities are unfruitful.
There can be an underlying belief that borrowers who need hard money may be unworthy or more likely to default on a loan, but this is not necessarily the case. There are countless reasons why borrowers may come up against barriers within the traditional banking system. Whether it's that a borrower already has an existing loan for an ongoing project or does not fit the traditional mold despite having capital, these borrowers face difficulty obtaining loans for worthwhile real estate projects.
That’s where trust deeds and companies like Ignite Funding come into play. Ignite Funding is a company that acts as a conduit between bankable borrowers and seasoned investors seeking real estate investment opportunities. The firm specializes in providing financing solutions in the form of loans collateralized by trust deeds, offering attractive returns to investors.
Ignite Funding operates with a focus on diversification, recognizing the importance of investing in capable borrowers across a wide range of markets and project types. As an intermediary for trust deed investments, the company continuously evaluates market influences such as job growth, economic stability and demand for homes, as these factors directly impact project value. With a minimum investment amount of $10,000, potential investors have multiple methods to choose from, including individual or joint cash accounts, self-directed IRA accounts, corporations, partnerships, LLCs, trusts and pension plans.
The company prides itself on providing individualized investment opportunities, allowing investors to choose the specific loans they are interested in and the amount they would like to fund. Ignite Funding is looking at real estate investment from a new lens, making it more accessible for both investors and borrowers. For trust deed investments through Ignite Funding, the minimum suitability standards for investors are a $70,000 household income for 2 continuous years or a $250,000 net worth, excluding the value of a primary residence. These requirements debunk the myth that only ultra-wealthy individuals can invest in real estate.
With a track record of facilitating over a billion dollars in real estate loans, Ignite Funding has established itself as a trusted platform in the industry, especially in the western United States.
As a financing platform, this company is proving the viability of trust deeds as a trustworthy real estate investment tool that investors can use to diversify their portfolios.
SPECIAL OFFER: As stated previously in the article, the minimum investment is $10,000. For those reading this, a special entry rate has been created for those who would like to get started today. To take advantage of this special entry rate, click here or text the word “Benzinga” to 702-919-4281.
Ignite Funding, LLC | 6700 Via Austi Parkway, Suite 300, Las Vegas, NV 89119 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL #311 | AZ CMB-0932150 | | Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents.
Featured photo by Bailey Anselme on Unsplash.
Discover the power of Ignite Funding's real estate investments backed by collateral, where you become the bank and earn monthly income from your investment dollars. We offer a unique alternative investment that connects quality real estate Borrowers with Investors who are seeking capital preservation in collateralized turn-key real estate investments, all while enjoying an impressive 10% to 12% annualized return.With a rich history dating back to 1995, Ignite Funding has continuously adapted to the ever-changing real estate landscape. Originally starting as a traditional home mortgage lender, we quickly transformed our business in 2011 to meet the growing demand for lending from homebuilders and developers. Since then, we have successfully funded over a Billion dollars in loans using Investor capital.
This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.
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Izzy Irizarry
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